After seeking other avenues to put their money to work during the five-year period following the 2008 financial crisis, investors have flocked back to equity mutual funds over the last 18 months. During the 2008-2012 timeframe, equity funds had average annual net outflows of roughly $86 billion, while taxable bond funds had average annual net inflows of more than $193 billion. Equity fund net outflows peaked at $200.9 billion during 2008, the year of the financial meltdown, and investors did not completely embrace equity funds again until 2013, when net inflows of more than $194 billion went into equity funds. Investors have continued to seek equity funds in 2014; equity funds year-to-date net inflows of $93.5 billion put their 18-month total at $287.9 billion.
The net outflows for equity funds from 2008-2012 were in direct contrast to the five-year period (2003-2007) preceding the Great Recession. During that time, equity funds had average annual inflows of more than $111 billion. Taxable bond funds also had positive net inflows during that time. Their results (net inflows of $84 billion per year on average) for that five-year period were comparable to their inflows over the past 18 months (total net inflows of $94.4 billion), but substantially less than their numbers when investors were looking for safe havens after the financial crisis.
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access